RS Logo

Light News and Events Could Mean Consolidation This Week? – May 19, 2025

Mike Tierney

Good morning,

Following a week where stocks rallied as if everything trade-related has been resolved (S&P +5.27% / week), we enter this week with a little rain on that parade. Moody’s downgraded U.S. Treasuries on deficit concerns – S&P Futures are off about -1%. Moody’s is the last of the major rating agencies to downgrade, so this isn’t terribly newsworthy – however, it reminds us that the growing fiscal deficit is a more significant long-term problem than trade deficits. Bond yields are back up to recent highs.

This week, there is not a lot of economic data scheduled to hit the tape. A 4-day event hosted by Microsoft starts Monday, Home Depot earnings Tuesday, and Target results on Wednesday. With China trade on a 90-day pause, it seems that the next important trade milestone for the U.S. is whether they can come to terms with the European Union (EU). According to Reuters, negotiations took place last week between the U.S. and the EU, but apparently, the EU is not in a hurry to agree to anything and wants a better deal than the U.K. or China. Additionally, the EU has previously stated that it has reciprocal countermeasures in place in the event it is unable to come to terms with the U.S.

Be well,
Mike

Disclosure and Source

Investment advisory services offered through Robertson Stephens Wealth Management, LLC (“Robertson Stephens”), an SEC-registered investment advisor. Registration does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. This material is for general informational purposes only and should not be construed as investment, tax or legal advice. It does not constitute a recommendation or offer to buy or sell any security, has not been tailored to the needs of any specific investor, and should not provide the basis for any investment decision. Please consult with your Advisor prior to making any Investment decisions. The information contained herein was compiled from sources believed to be reliable, but Robertson Stephens does not guarantee its accuracy or completeness. Information, views and opinions are current as of the date of this presentation, are based on the information available at the time, and are subject to change based on market and other conditions. Robertson Stephens assumes no duty to update this information. Unless otherwise noted, any individual opinions presented are those of the author and not necessarily those of Robertson Stephens. Performance may be compared to several indices. Indices are unmanaged and reflect the reinvestment of all income or dividends but do not reflect the deduction of any fees or expenses which would reduce returns. A complete list of Robertson Stephens Investment Office recommendations over the previous 12 months is available upon request. Past performance does not guarantee future results. Forward-looking performance targets or estimates are not guaranteed and may not be achieved. Investing entails risks, including possible loss of principal. Alternative investments are only available to qualified investors and are not suitable for all investors. Alternative investments include risks such as illiquidity, long time horizons, reduced transparency, and significant loss of principal. This material is an investment advisory publication intended for investment advisory clients and prospective clients only. Robertson Stephens only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Robertson Stephens’ current written disclosure brochure filed with the SEC which discusses, among other things, Robertson Stephens’ business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov. © 2025 Robertson Stephens Wealth Management, LLC. All rights reserved. Robertson Stephens is a registered trademark of Robertson Stephens Wealth Management, LLC in the United States and elsewhere.

Talk To Us